700-PLUS IN U.S. MILITARY WRONGFULLY LOST HOMES

Banks foreclosed on far more than previously believed

The issue of banks improperly repossessing homes of U.S. military members may be worse than originally expected, based on a New York Times report published Sunday.

The Times said four major banks — Bank of America, Citigroup, JPMorgan Chase and Wells Fargo — wrongfully seized 700-plus homes of service members during the housing crash.

That new figure, based on anonymous sources, is particularly alarming, because those reported repossessions could violate the Servicemembers Civil Relief Act, a federal law that protects active members of the armed forces in situations such as foreclosures.

The new estimate is higher than previous ones that have come up in committee hearings or in court records.

Major banks self-reported 295 improper foreclosures on service members as of mid-2012, the most recent update received by the House Oversight and Government Reform Committee. The chairman of that committee is Rep. Darrell Issa, R-Vista.

“Violations of federal laws designed to protect our troops serving on active duty from foreclosures are unacceptable,” said Frederick R. Hill, a spokesman for Issa.

“Those subjected to such illegal practices are entitled to appropriate compensation, and the federal government has an obligation to prevent this from happening again,” Hill added. “Congressman Issa remains closely engaged in this issue of great concern to military families here in San Diego.”

No geographical breakdowns were available for any of those estimates.

The new total stems from analysis via an $8.5 billion settlement between regulators and major banks, The New York Times story says. The deal was reached in January between the 10 banks and two federal agencies — the Office of the Comptroller of the Currency and the Federal Reserve Board.

The settlement is expected to bring monetary relief to potentially wronged borrowers, including service members and veterans.

Housing advocates have argued the settlement deal is a pass for the banks and a bad deal for consumers. It replaced a costly and drawn-out process that promised free foreclosure audits to borrowers in order to determine harm and compensation.

About 4 million borrowers were eligible for those reviews. Ultimately, 16 percent, or 654,000 borrowers submitted requests.

The Times said the new findings have been shown to U.S regulators, but it did not name names.

Bryan Hubbard, spokesman for the Office of the Comptroller of the Currency, was unable to validate the data presented by the Times. The Federal Reserve could not be reached for comment on Monday afternoon.

The issue of improper actions on properties owned by military members and veterans is particularly important for this region: San Diego County has a community of roughly 260,000 veterans, according to the county.